MINNEAPOLIS RENTAL HOUSING BRIEF - MARCH 2021 - HOUSINGLINK
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Minneapolis Rental Housing Brief March 2021
MINNEAPOLIS
Rents
Median Rents¹
ONE BEDROOM TWO BEDROOM THREE BEDROOM
March 2021 $1,045 March 2021 $1,345 March 2021 $1,475
March 2020 $1,025 March 2020 $1,320 March 2020 $1,500
2% 2% -2%
Increase Increase Decrease
YOY YOY YOY
Income Required to Rent a Home in March 2021
Figures are based on the common landlord screening requirement that an applicant
must earn 2.5 times the rent in income.
ONE BEDROOM TWO BEDROOM THREE BEDROOM
$2,613 $3,363 $3,688
Vacancy Distribution by Building Type²
A PA R T M E N T S I N G L E FA M I LY H O M E OTHER
(Condo, Duplex, Townhome)
March 2021 80% March 2021 9% March 2021 11%
March 2020 77% March 2020 9% March 2020 14%
¹ To learn more about HousingLink rent data, watch this video.
² Different than “vacancy rate,” we are saying that OF the vacancy rate (around 3%), xx% of the vacancies are apartments, xx% are single
family homes, and xx% are of another building type.
Source: HousingLink’s Market Rent Data.
Page 2
HousingLink.orgMINNEAPOLIS
Rental Housing Affordability
Median One Bedroom Rents¹
$1,081
$1,045
$1,025
$1,009
$1,000
$985
MARCH 2021 MARCH 2020
Tax Credit Properties Market Rate Properties Listed on HousingLink
Number of NOAH Rental Vacancies²
ONE BEDROOM TWO BEDROOM THREE BEDROOM
March
2021 795 397 102
March
2020 355 157 74
¹ Source: HousingLink’s Market Rent Data.
² Ibid. As of the April 2020 report, we re-defined “NOAH” from a set rent range across all rental listings to a standard “affordable to
60% of Area Median Income” benchmark that accommodates changing incomes as well as number of bedrooms and likely utility
costs by unit.
Page 3
HousingLink.orgMINNEAPOLIS
Rental Housing Affordability
% of Minneapolis Rental Vacancies Affordable by Income Level¹
March 2021 March 2020
30% AMI*
0% 0%
50% AMI*
20% 13%
60% AMI*
53% 47%
80% AMI*
84% 79%
100% AMI*
95% 93%
¹ To learn more about how HousingLink calculates affordability by area median income, watch this video.
*AMI (Area Median Income) is $73,500 for an individual and $104,900 for a family of four in the Twin Cities Metro (HUD, 2021).
Source: HousingLink’s Market Rent Data. AMI based on HUD’s Income Limits data, published annually at https://www.huduser.gov.
Affordability analysis based on a family paying no more than 30% of income on gross housing costs, accounting for household size, utility
costs, and building type.
Page 4
HousingLink.orgMINNEAPOLIS
Subsidized Housing in Minneapolis
March 2021 Vacancies Willing to Accept a Section 8 Housing
Choice Voucher¹
March 2021 March 2020
ONE BEDROOM
65 12
TWO BEDROOM
64 13
THREE BEDROOM
54 14
²
Housing Choice Vouchers forfeited from Q1 2021
1 This figure refers to vouchers families were unable to place in service. This can result from rent
exceeding the Public Housing Authority’s ability to adequately subsidize the voucher holder’s
portion of, or a landlord’s unwillingness to participate in, the Section 8 Housing Choice Voucher
program. Periods of low vacancy, such as Minneapolis is currently experiencing, typically
exacerbate both of these constraints.
13 March 2021 Waiting List Openings
³
↓ down from 14 last year.
¹ Source: HousingLink’s Market Rent Data.
² Source: Minneapolis Public Housing Authority.
³ Source: Waiting list openings advertised on HousingLink include Public Housing, Project Based Section 8, Tax Credit, and more.
Page 5
HousingLink.orgMINNEAPOLIS
Rental Housing Stock
Licensed Rental Units – Q1 2021¹
100,231 +4.4% since 2020
Licensed units
1,589 -3.9% since 2020
“Tier 3” rental units
24,657 +1.2% since 2020
Units in 1 and 2 Unit
Licenses
1,459 Units of Short-Term Rental Stock
(↑ 37% from 2020)
1,411
entire home rentals listed ²
¹ Source: Analysis of City of Minneapolis Regulatory Services rental license data. Note: The City of Minneapolis uses a tiered rating system
as part of their rental process. Tier 3 rentals are those which require excessive city services, are poorly maintained or managed, and may be
at a higher risk for fire damage. Tier 3 rentals are additionally on the most frequent inspection cycle (one-year).
² Source: As of March 2021 we are obtaining this data from Insider AirBnB, an independent aggregator of AirBnB data at insideairbnb.com.
Page 6
HousingLink.orgApartment Sales & Development
Apartment Development as of the end of Q4 2020¹
PROJECTS
PROPOSED
w/Known Affordable Units 48
w/no Known Affordable Units 97
PROJECTS
PERMITTED & UNDER CONSTRUCTION
w/Known Affordable Units 33
w/no Known Affordable Units 109
Presence of affordable units is not always known when information is gathered for this metric and thus it is most
accurate to simply refer to projects “w/Known Affordable Units” and projects “w/no Known Affordable Units.”
Average Price-Per-Unit Apartment Sales
Q2 2020– Q1 2021²
$144,794 29% down from
Per unit
previous 12 months
¹ Source: This analysis is based on development monitoring by the Metropolitan Council, and consists of selected proposed,
permitted, and under construction place-level residential and nonresidential projects, as opposed to individual units. Data
on residential and nonresidential projects are obtained on an on-going basis from daily, weekly, monthly and quarterly
publications such as Finance & Commerce, Mpls./St. Paul Business Journal, Pioneer Press, Star Tribune, Twin Cities Business
Magazine, and Minneapolis Trends reports, as well as a multitude of other sources such as school district updates, developer
websites and television news reports, among others. Complete attribute data for all entries may not be available and for
purposes of this report, projects in a withdrawn, on hold, or complete status are not reported.
² Source: This analysis is based on research conducted since 2011 exclusively on projects vetted or written about by Finance
& Commerce publication for its Twin Cities Apartment Sales Tracker, available at finance-commerce.com.
Page 7
HousingLink.orgMINNEAPOLIS
Notable Housing Facts
44% of Minneapolis renters live in housing that is
not affordable to them¹
Affordability is defined as paying no more than 30% of pre-tax household income on gross
housing costs (which includes rent and utilities). Those paying more than 30% of their
income on housing are considered cost-burdened, a figure that is typically much higher
among renters than homeowners.
6% of Minneapolis Public Schools students
experienced homelessness in the past year²
Minneapolis Public Schools tracks homeless and highly mobile students lacking a fixed,
regular, and adequate nighttime residence (homelessness as defined by the McKinney-
Vento Homeless Assistance Act). This includes children who live in shelters and transitional
housing; those living in motels, hotels, and weekly-rate residences; those doubled-up with
friends or non-immediate family; those living in abandoned buildings, public space, or cars;
and those awaiting foster care placeent.
Housing openings with one or more
accessible features March 2021³ 147 ↑ up from 21 last year
¹ Source: Analysis of 2020 1-year American Community Survey data from the US Census. For more discussion of this topic, including
figures on “severe cost burden” (those paying more than 50% of their income on housing costs), visit:
https://metrocouncil.org/Housing/Planning/Housing-Policy-Plan-Dashboard/Housing-Cost-Burden.aspx
² Source: Minneapolis Public Schools, for the 2019-2020 school year.
³ Source: Advertised vacancies on HousingLink.org.
Page 8
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Research Manager
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